The grey Hyundai Sonata was traveling north on Third Avenue just before 8 p.m. Sunday near 21st Street.
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An eyewitness said the sound of the sedan swerving, striking several pedestrians, and smashing into a kiosk "sounded like a grenade going off."
Police said 26-year-old Mahbub Ali, of Queens, was intoxicated and may have been trying to avoid a cyclist the car crashed into a group of people.
A 23-year-old male pedestrian was pronounced dead at Bellevue Hospital.
His name was being withheld pending notification of family.
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A 26-year-old female pedestrian remains hospitalized in critical condition with a fractured leg, and a 21-year-old pedestrian is stable after suffering a laceration to his left leg.
An 18-year-old male cyclist who was struck and a 25-year-old woman who was a passenger in the Hyundai were taken to the hospital.
The 18-year-old suffered leg and back injuries, while the 25-year-old broke her right leg.
One of the victims is a migrant from a shelter around the corner.
Migrants told Eyewitness News reporter CeFaan Kim that they often stand on the corner, so they can use the city's free Wi-Fi hotspot to keep in touch with family back home.
"This is an area where a lot of the migrants staying at the Grammercy Training Academy," resident George Colli said. "They're shoulder to shoulder, head to toe there. They're outside."
Ali was not injured and was taken into custody immediately following the crash.
He has been charged with Manslaughter, Vehicular Manslaughter, Assault and Driving While Intoxicated.
Ali appeared stoic as police officers led him from the 13th Precinct in Gramercy Park on Monday night before raking him to central booking.
The crash happened next to the former NYPD Police Academy, which the city has been using to house asylum seekers.
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